Inside the newly introduced Colorado telecom reform bill

UPDATE 6:02 P.M. | Statement from CenturyLink added to the bottom of the post.

Colorado lawmakers finally introduced today the telecom reform bill they’ve been working on for several months.

Among other things, Senate Bill 157 proposes to transfer some funds from the Colorado High Cost Support Mechanism toward rural broadband expansion.

It would phase out the high-cost fund by January 2025. The antiquated program is under attack because it continues to reimburse more than $50 million annually to carriers for providing land-line phone service in areas that are believed to be hard to serve, even as wireless and Internet-based phone services are now widely available. In fact, one wireless carrier drew from the fund last year.

The bill calls for a one-time transfer of $5 million from the high-cost fund in March 2013 to establish the Broadband Capital Investment Fund, which would help finance the build-out of high-speed Internet service in areas deemed to be unserved.

The high-cost fund is supported by a surcharge on cellphone and land-line bills. The bill proposes to freeze the surcharge and transfer an undetermined amount from the high-cost program to the broadband fund annually until both programs are phased out in 2025.

SB 157 also proposes to remove price caps on basic phone service in competitive markets.

“Our industry cannot continue to support both consumer and business needs while operating under antiquated laws created before the boon of high speed data, mobile broadband technology and the increasing demand for advanced networks,” said AT&T state president Bill Soards. “We must modernize our laws, reduce provider subsidies and streamline regulations to support Colorado’s broadband future.”

Federal regulators are also shifting the Universal Service Fund, the federal version of the state high-cost program, toward broadband expansion.

CenturyLink, which receives the vast majority of high-cost funds, issued this statement:

“The real effect of this bill will be hundreds of jobs lost in Colorado in addition to over 400,000 rural customers who will no longer have access to affordable phone service. This bill sends tens of millions of dollars to out-of-state long distance companies and over the next decade gives well over one hundred million dollars to the State of Colorado to create a new bureaucracy with no oversight.”

What the heck is this, “… over the next decade gives well over one hundred million dollars to the State of Colorado to create a new bureaucracy with no oversight.”

So now we have a GOP Senator sponsoring a new $100M government slush fund for Hick all backed by big Texas AT&T!

Centurylink won’t say it, but I will ….more Chicao/DC corruption for politicians.

So who’s paying for the Scheffel/Hick slush fund … yep, it’s us.

http://profile.yahoo.com/GQ5MGFBI2PFKZFLKG5D5IKOW7E Josh Spratt

I work in Larkspur. I have to drive 1/2 mile down the road to get cell phone service. Thank heaven for Century Link land line. I would have no service at all. Shame on the lawmakers for writing off the rural constituents.

Say no to cost increases

What the story neglects to mention is the huge increase in cost this puts on rural Colorado for basic phone service. Bills like this may work for DC where high cost doesn’t exist but it’s wrong for Colorado!

Tamara Chuang covers personal technology and local tech news for The Denver Post. She previously spent 10 years doing the same thing for The Orange County Register before taking a hiatus to move here and become a SAHM to a precocious toddler.

Laura Keeney is a business reporter with The Denver Post, covering aerospace, aviation and biotech. Over the last two decades, she's covered everything from agribusiness to punk rock. Keeney holds an AACSB-accredited MBA from St. John Fisher College in Rochester, NY.